Shares of Vertex experienced a significant boost on Thursday following the company's optimistic revenue forecast for 2024 and unexpected profit posting.
Positive Revenue Guidance Leads to Stock Surge
Trading at $32.74, the stock saw a 29% increase in late morning trading, hitting its highest intraday level since March 2021. Over the past year, shares have more than doubled in value.
Impressive Financial Performance and Expectations
Based in King of Prussia, Pa., Vertex revealed plans to achieve revenue ranging between $650 million and $660 million in 2024, surpassing the $638.2 million anticipated by analysts. Additionally, the company foresees a 28% growth in cloud revenue.
Chief Financial Officer John Schwab expressed confidence in Vertex's ability to leverage multiple business drivers for mid to high teens revenue growth.
Strong Fourth Quarter Results
In the fourth quarter, Vertex witnessed an 18% revenue increase to $154.9 million, surpassing both the company's own projections and the $146.5 million consensus estimate by analysts.
During the quarter ended Dec. 31, the company reported a profit of $15.3 million, or 9 cents per share, marking a significant improvement from the $5.31 million loss, or 4 cents per share, reported a year earlier. Analysts surveyed by FactSet had expected a per-share loss of 1 cent.
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